World’s Largest Floating Wind Farm Completed, Statkaft Takes Power
The installation of the wind turbines at Kincardine in Scotland, which has been called the world’s largest floating wind farm, was recently completed. With the completion of the project, which is designed to provide over 200,000 MWh per year, Norway’s Statkraft began to take power from the site under its long-term Power Purchase Agreement.
Final approvals for the project were granted in March 2017 with contracts for the project awarded in 2017 and 2018. The first power was demonstrated from the site in October 2018. Kincardine consists of a total of six wind turbines The project, which had originally been expected to achieve full capacity in late 2020, is projected to have a 25-year lifespan providing enough power from over 50,000 Scottish homes.
“This is the first floating project that Statkraft has been involved in and we expect more to follow; a key technology that could help countries around the world achieve their renewable energy targets,” said John Puddephatt, Manager Long Term PPA Origination at Statkraft. "We are proud to be one of the partners that helped bring this highly innovative project to completion. PPAs such as these play a key role in providing project owners with financial predictability and security, therefore, helping enable long-term investment and financing.”
Under the agreement reached in 2018, Statkraft will purchase all electrical output from the floating wind project with a guaranteed minimum price per MWh until 2029. This long-term route-to-market partnership with Statkraft, which is for 100 percent of the electricity generated by the project, has been set up with pre-agreed terms for the full duration, reducing the financial risk to its investors.
Jaime Altolaguirre, KOWL’s Managing Director from Cobra Group (major shareholder in KOWL): "We entered into this agreement with Statkraft with confidence, knowing that selecting them and selecting this particular PPA structure, provided us with clarity on our long-term income. It also gave us a partner that we were willing to work with on a long-term basis. We wanted a counterparty who had offshore wind experience in the UK and a track record with UK law firms, funders, and investors. Statkraft, as Europe's largest supplier of renewable energy, stood out due to their large-scale investment and operational experience in this region. This solid experience allowed them to provide bankable and competitive commercial terms and to agree on them quickly."
Since 2006, Statkraft has invested close to $2 million in the UK's renewable energy infrastructure and facilitated over 6 GW of new-build renewable energy generation through PPA contracts. Statkraft says that it has a longstanding interest in Scotland, as it is one of the most important countries in the challenge to achieve global carbon neutrality, due to its favorable conditions for renewable energy.